Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago,

User Stats

19
Posts
8
Votes
Mike Rios
  • Rental Property Investor
  • FL
8
Votes |
19
Posts

1st lien HELOC or cash out refi

Mike Rios
  • Rental Property Investor
  • FL
Posted

Hey BP,

About to finish my first BRRRR but need some help deciding whether to do a first position HELOC or Cash out refi.

-Bought house free and clear for 190000

-Rehab was 100000

-Appraised for 345000 (275000 80% LT )

I'm getting offered a 2.99 introductory rate 80 LTV HELOC that adjusts every year with the prime. I'm also being offered a 3.5 80 LTV cash out refi

Isee the merits for both, HELOC is flexible and I can be cash flowing more right away and I can use it when I need it, but I'm scared of the adjustable rates

The cash out refi seems appealing because I can lock In the 3.5 rate (considered my primary) and I can cash flow close to 1k after expenses, but I don’t have any deals lined up.

Not sure if I'm going to use that lump sum to buy another Brrrr SFH or use it as a down payment for a bigger multi family

Goals are to net 100k a month in passive income and to grow my portfolio relatively fast. Any advice would be appreciated it!

Loading replies...